Welcome to Daring Daily On Demand, your most trusted resource to help you become better

every day.

Here's your success mentor, Darren Hardy.

In 2002, Elon Musk began his quest to send the first rocket to Mars, an idea that would

eventually become SpaceX.

He ran into a major challenge right off the bat.

After visiting a number of aerospace manufacturers around the world, Elon discovered the cost

of purchasing a rocket was astronomical, up to $65 million per hour.

Given the non-starter high price, instead of giving up on the idea, he began to rethink

the problem using first principles.

He said, quote, okay, let's look at the first principles, what is a rocket made of?

Aerospace grade aluminum, alloys, plus some titanium, copper, and carbon fiber.

Then I asked, he said, what is the value of those materials on the commodities market?

It turned out that the materials cost of a rocket was around 2% of the typical purchase

price.

So instead of buying a finished rocket for tens of millions of dollars, Elon decided

to create his own company, purchased the raw materials for cheap, and then build the

rockets himself.

And that's when SpaceX was born.

Within a few years, SpaceX had cut the price of launching a rocket by nearly 10 times.

I'm not talking 10%, 50%, 75%, or 100%, we're talking 10 times, and still making a profit.

Elon used first principles thinking to break the situation down to the fundamentals, buy

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